Embassy, June 15th, 2005
NEWS STORY
By Sarah McGregor
Cuba Trade: 'Don't Ask, Don't Tell'
Canadian firms manage to do business with Cuba in the shadow of restrictive U.S. policy
Carpets, computer hardware and newsprint are some of the household items crammed into large containers and loaded onto one of four cargo ships that leave the port of HaIifax on a non-stop Atlantic voyage to Havana each month. "Cuba needs a lot of products," said Bill Shatner, a sales representative for the Cuban-based shipping company Melfi Container Lines. "It's not an easy market to deal with, but it's been busy."
Canada is Cuba's third-largest trading partner, with about $900 million in two-way exchange in 2004, behind only Venezuela and Spain.
But it's a trade statistic many in the Canadian private sector are loath to admit for fear it could rattle much more lucrative trade deals with the United States. The U.S. has in place an almost 45-year economic embargo against Cuba, and anti-Cuban legislation reaches beyond domestic zones. The toughest is a rarely enforced American law that punishes foreign companies doing business in Cuba. It has had a "chilling effect" on the expansion of Canadian commercial ties with the Caribbean nation, according to International Trade Canada.
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Canada responded to the legislation in the early 1990s by passing a blocking order, ensuring that Canadian companies only abide by national laws and regulations not those of a foreign country. But these measures, for the large part, are untested. Sherritt International is the only Canadian company found to have disobeyed the U.S. law by taking property once owned by Americans.
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